India in 2018: why to remain bullish over india??

India's journey in past year has tremendous, and currently it is on the cusp of a cyclical recovery. The government has continued to implement structural reforms and prudent macro policies, that will help boost growth rate further in the coming years. After slowing down for a quarter the GDP growth quickened to 6.3per cent during July-September 2017-18. The sudden implementation of demonetisation and GST has gone reasonably well and India is yet again on its way to thrive as the fastest growing economy in the world. It won't be wrong to say that India is still a bright-spot today and the investor confidence is growing it. With both domestic and global economy showing signs of recovery, hopes have sprung anew for 2018. Our perspective fo the year 2018 for India is positive and Welcoming.

Let us see what the top financial firms and analysts are saying about Indian economy for the year2018

1. 2018 will be the year of sustained growth for India.

The year 2018 promises to be a year of sustained recovery for the Indian economy. The growth rate is expected to accelerate to 7.2 per cent in 2018 and 7.4per cent in 2019, the UN said, describing the outlook for the country as "largely Positive".

The UN confirmed this by saying that "Despite the slowdown observed in early 2017 and the lingering effects from the demonetisation policy, the outlook for India remains largely positive, underpinned by robust private consumption and public investment as well as ongoing structural reforms,". At this growth rate, India will beat China which is expected to keep its growth pace at 6.5 per cent in 2018. Infact such recommendation have come not only from the United Nations but also from other institutions like.

2. India to overtake france and the UK to become fifth-largest economy - CEBR

According to a report by the centre for economics and Business research's 2018 world economic league table, india may outdo britain and france in 2018 to become the world's fifth-largest economy in doller terms. the centre for economics and business research(Cebr) consultancy's 2018 world economic legue table boosted india's confidence by saying that "Despite temporary serbacks...india's economy has still caught up with that of france and the UK and in 2018 will have overtaken them both to become the world's fifth largest economy in doller terms," said Douglas McWilliams, CEBR Deputy Chairman. India's ascent will make Asian econoies increasingly dominate the top 10 largest economies over the next 15 years.

3. Moody views Indian companie's credit profile improving in 2018

Last year, after 13 years, India's sovereign rating was upgraded from Baa3 to Baa2 with a stable outlook by the international rating agency.But the topmost financial institution, Moody in its report titled Non-financial corporates-India, 2018 Outlook said that the trend will continue in 2018 and Indian firms will see improved credit profiles in 2018 driven by solid economic and Ebitda (earnings before interest, taxes, depreciation and amortization - is a measure of operating profitability) growth, backed by rising domestic GDP growth, new production capacity, being commodity prices, Indian companies will see improved credit profiles in 2018.

If India's credit profile will improve, it will further strengthen Indian companies and their growth, Which will simultaneously boost investor confidence.

4.Edelweiss Investment Research is confident that Indian economic cycle is entering the strongest phase

The Edelweiss Investment Research is optimistic about Indian economy which it believes will enter the strongest phase of growth when stocks, bonds and commodities all rally together. It kept it this way by saying "We believe that India is at the cusp of entering this phase and full blown bull market is yet to play out".

According to Edelweiss Investment Research, consumption and exports are boosting economic growth in the country. While consumption has displayed sharp recovery after the cash crunch in early 2017, investments are witnessing only a government supported recovery which is inadequate but effective for a few sectors like railways,roads and power transmission and distribution(T&D).

5. Morgan Stanley says earning prospects are the strongest in India since 2010

The Global Financial firm, Morgan Stanley says that the earnings prospects are the strongest in India since 2010. India's private capital spending and demand conditions are gradually recovering after reform implementation in India. Backing governments action to recapitalize Indian public-sector banks it added saying the step will set "the stage for a fully fledged recovery in 2018 and further to 7.7 percent in 2019". It believes that both corporate returns expectations and balance sheet fundamentals are improving, said, "the plan would remove the potential tail risk of the banking system posing a drag on growth, improve the headroom for growth and boost investors' and domestic corporate sentiment. This should help to cement the growth acceleration and capex recovery that we were expecting."

Mutual Fund Advisor

The company has recently completed its capex in the textile segment by increasing the production capacity in FY17. Further, the company has also undertaken capacity expansion of its V-Next product by investing in a greenfield facility of 50,000 TPA in Haryana.

While the building segment has experienced secular growth, the textiles segment was impacted by the inverted tax structure under GST. However, with this being addressed, growth is likely to continue. On the back of the above, we expect overall revenues to grow at a CAGR of 8.3% to Rs. 1,228.6 crore by FY20.

EBITDA is expected to grow to Rs. 178.1 crore (CAGR of 15.8%) over the same period. While the margins of the textile segment are expected to remain resilient, the building segment margins are expected to improve by 642bps to 15.5% with the improved capacity utilization and an increase in theshare of V-Next products. The ROE and ROCE are also expected to improve by 461 bps to 15.7% and 672bps to 20%, respectively, by FY20.

We initiate coverage on Visaka as a BUY with a price objective of Rs 986, representing a potential upside of 28% over a period of 18 months. We have arrived at the price target by applying SOTP

valuation. Our optimism stems from the following-

• Government initiatives like “Housing for All by 2022”, “Smart City Mission” and “Pradhan Mantri Awas Yojana” are expected to give momentum to the building material industry.

• Visaka is undertaking capacity expansion in the boards and panels segment. The current capacity of 129750 MT will be expanded to 179750 MT by end of FY18 which will lead to strong revenue growth of 27.6% CAGR over FY17-FY20.

• The implementation of GST has improved the competitiveness of its Building products. The tax incidence on the competingproducts has remained the same whereas the tax incidence on Visaka’s products has been reduced from 28% to 18%.

Thursday, 25 January 2018

India in 2018: why to remain bullish over india??

India's journey in past year has tremendous, and currently it is on the cusp of a cyclical recovery. The government has continued to implement structural reforms and prudent macro policies, that will help boost growth rate further in the coming years. After slowing down for a quarter the GDP growth quickened to 6.3per cent during July-September 2017-18. The sudden implementation of demonetisation and GST has gone reasonably well and India is yet again on its way to thrive as the fastest growing economy in the world. It won't be wrong to say that India is still a bright-spot today and the investor confidence is growing it. With both domestic and global economy showing signs of recovery, hopes have sprung anew for 2018. Our perspective fo the year 2018 for India is positive and Welcoming.

Let us see what the top financial firms and analysts are saying about Indian economy for the year2018

1. 2018 will be the year of sustained growth for India.

The year 2018 promises to be a year of sustained recovery for the Indian economy. The growth rate is expected to accelerate to 7.2 per cent in 2018 and 7.4per cent in 2019, the UN said, describing the outlook for the country as "largely Positive".

The UN confirmed this by saying that "Despite the slowdown observed in early 2017 and the lingering effects from the demonetisation policy, the outlook for India remains largely positive, underpinned by robust private consumption and public investment as well as ongoing structural reforms,". At this growth rate, India will beat China which is expected to keep its growth pace at 6.5 per cent in 2018. Infact such recommendation have come not only from the United Nations but also from other institutions like.

2. India to overtake france and the UK to become fifth-largest economy - CEBR

According to a report by the centre for economics and Business research's 2018 world economic league table, india may outdo britain and france in 2018 to become the world's fifth-largest economy in doller terms. the centre for economics and business research(Cebr) consultancy's 2018 world economic legue table boosted india's confidence by saying that "Despite temporary serbacks...india's economy has still caught up with that of france and the UK and in 2018 will have overtaken them both to become the world's fifth largest economy in doller terms," said Douglas McWilliams, CEBR Deputy Chairman. India's ascent will make Asian econoies increasingly dominate the top 10 largest economies over the next 15 years.

3. Moody views Indian companie's credit profile improving in 2018

Last year, after 13 years, India's sovereign rating was upgraded from Baa3 to Baa2 with a stable outlook by the international rating agency.But the topmost financial institution, Moody in its report titled Non-financial corporates-India, 2018 Outlook said that the trend will continue in 2018 and Indian firms will see improved credit profiles in 2018 driven by solid economic and Ebitda (earnings before interest, taxes, depreciation and amortization - is a measure of operating profitability) growth, backed by rising domestic GDP growth, new production capacity, being commodity prices, Indian companies will see improved credit profiles in 2018.

If India's credit profile will improve, it will further strengthen Indian companies and their growth, Which will simultaneously boost investor confidence.

4.Edelweiss Investment Research is confident that Indian economic cycle is entering the strongest phase

The Edelweiss Investment Research is optimistic about Indian economy which it believes will enter the strongest phase of growth when stocks, bonds and commodities all rally together. It kept it this way by saying "We believe that India is at the cusp of entering this phase and full blown bull market is yet to play out".

According to Edelweiss Investment Research, consumption and exports are boosting economic growth in the country. While consumption has displayed sharp recovery after the cash crunch in early 2017, investments are witnessing only a government supported recovery which is inadequate but effective for a few sectors like railways,roads and power transmission and distribution(T&D).

Wednesday, 24 January 2018

India in 2018: why to remain bullish over india??

India's journey in past year has tremendous, and currently it is on the cusp of a cyclical recovery. The government has continued to implement structural reforms and prudent macro policies, that will help boost growth rate further in the coming years. After slowing down for a quarter the GDP growth quickened to 6.3per cent during July-September 2017-18. The sudden implementation of demonetisation and GST has gone reasonably well and India is yet again on its way to thrive as the fastest growing economy in the world. It won't be wrong to say that India is still a bright-spot today and the investor confidence is growing it. With both domestic and global economy showing signs of recovery, hopes have sprung anew for 2018. Our perspective fo the year 2018 for India is positive and Welcoming.

Let us see what the top financial firms and analysts are saying about Indian economy for the year2018

1. 2018 will be the year of sustained growth for India.

The year 2018 promises to be a year of sustained recovery for the Indian economy. The growth rate is expected to accelerate to 7.2 per cent in 2018 and 7.4per cent in 2019, the UN said, describing the outlook for the country as "largely Positive".

The UN confirmed this by saying that "Despite the slowdown observed in early 2017 and the lingering effects from the demonetisation policy, the outlook for India remains largely positive, underpinned by robust private consumption and public investment as well as ongoing structural reforms,". At this growth rate, India will beat China which is expected to keep its growth pace at 6.5 per cent in 2018. Infact such recommendation have come not only from the United Nations but also from other institutions like.

2. India to overtake france and the UK to become fifth-largest economy - CEBR

According to a report by the centre for economics and Business research's 2018 world economic league table, india may outdo britain and france in 2018 to become the world's fifth-largest economy in doller terms. the centre for economics and business research(Cebr) consultancy's 2018 world economic legue table boosted india's confidence by saying that "Despite temporary serbacks...india's economy has still caught up with that of france and the UK and in 2018 will have overtaken them both to become the world's fifth largest economy in doller terms," said Douglas McWilliams, CEBR Deputy Chairman. India's ascent will make Asian econoies increasingly dominate the top 10 largest economies over the next 15 years.

3. Moody views Indian companie's credit profile improving in 2018

Last year, after 13 years, India's sovereign rating was upgraded from Baa3 to Baa2 with a stable outlook by the international rating agency.But the topmost financial institution, Moody in its report titled Non-financial corporates-India, 2018 Outlook said that the trend will continue in 2018 and Indian firms will see improved credit profiles in 2018 driven by solid economic and Ebitda (earnings before interest, taxes, depreciation and amortization - is a measure of operating profitability) growth, backed by rising domestic GDP growth, new production capacity, being commodity prices, Indian companies will see improved credit profiles in 2018.

If India'scredit profile will improve, it will further strengthen Indian companies and their growth, Which will simultaneously boost investor confidence.

Monday, 22 January 2018

Mutual Fund Advisor

NCL Industries

Buy

NCLI (Nagarjuna Cement Ltd Industries) has recently completed its capex in both its leading verticals of cement (0.7 MTPA) and particle boards (30,000 TPA). Post this the cement capacity stands elevated to 2.7 mtpa while the particle board capacity has expanded by 50% to 90,000 TPA. Further, the company plans to commission a MDF board plant with capacity of 1000 boards per day by Sept FY19.

This plant is expected to breakeven by FY20 and will marginally dent overall EBITDA margins. On the back of the above we expect overall revenues to grow at a CAGR of 27.7% to Rs 1595.9 crores by FY20. EBITDA is expected to grow to Rs 250.9 crores (CAGR of 30.0%) over the same period. While margins of the cement business are expected to remain resilient, particle board margins are expected to taper given the impending competition. Despite this overall margins will improve by 79 bps to 15.7% by FY20.

The repayment of debt to the extent of Rs 150 crores (from the recently concluded QIP) will not only lead to de-leveraging the balance sheet but enable faster growth in PAT to Rs 151.8 crores (CAGR of 40.5%). We expect ROE to dip slightly to 14.1% over the period FY18-19 before clawing back to 20%plus levels by FY20. Over the same period ROCE is

Amber Enterprises India Limited

Amber Enterprises India Limited (Amber) established in 1990, is a Punjab based market leading manufacturer in the RAC OEM/ODM industry in India, with a market share of 55.4% in terms of volume in FY17.

It is a one-stop solutions provider for the major brands in the RAC industry and currently serves eight out of the top 10 RAC brands in India.

India in 2018: Why to Remain Bullish Over )India??

India's journey in past year has tremendous, and currently it is on the cusp of a cyclical recovery. The government has continued to implement structural reforms and prudent macro policies, that will help boost growth rate further in the coming years. After slowing down for a quarter the GDP growth quickened to 6.3per cent during July-September 2017-18. The sudden implementation of demonetisation and GST has gone reasonably well and India is yet again on its way to thrive as the fastest growing economy in the world. It won't be wrong to say that India is still a bright-spot today and the investor confidence is growing it. With both domestic and global economy showing signs of recovery, hopes have sprung anew for 2018. Our perspective fo the year 2018 for India is positive and Welcoming.

Let us see what the top financial firms and analysts are saying about Indian economy for the year2018

1. 2018 will be the year of sustained growth for India.

The year 2018 promises to be a year of sustained recovery for the Indian economy. The growth rate is expected to accelerate to 7.2 per cent in 2018 and 7.4per cent in 2019, the UN said, describing the outlook for the country as "largely Positive".

The UN confirmed this by saying that "Despite the slowdown observed in early 2017 and the lingering effects from the demonetisation policy, the outlook for India remains largely positive, underpinned by robust private consumption and public investment as well as ongoing structural reforms,". At this growth rate, India will beat China which is expected to keep its growth pace at 6.5 per cent in 2018. Infact such recommendation have come not only from the United Nations but also from other institutions like.

2. India to overtake france and the UK to become fifth-largest economy - CEBR

According to a report by the centre for economics and Business research's 2018 world economic league table, india may outdo britain and france in 2018 to become the world's fifth-largest economy in doller terms. the centre for economics and business research(Cebr) consultancy's 2018 world economic legue table boosted india's confidence by saying that "Despite temporary serbacks...india's economy has still caught up with that of france and the UK and in 2018 will have overtaken them both to become the world's fifth largest economy in doller terms," said Douglas McWilliams, CEBR Deputy Chairman. India's ascent will make Asian econoies increasingly dominate the top 10 largest economies over the next 15 years.